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Online real estate portals asked to register with KRERA within two months

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Digital real estate portals are online intermediaries for promoting real estate projects, says circular

Online real estate portals, which have been giving serious competition to real estate agents for years, have now come under the lens of the Karnataka Real Estate Regulatory Authority (K-RERA) for promoting projects without details of RERA registration number — a requirement under the RERA Act and Rules.

Digital real estate portals, which have been termed “online intermediaries for promoting real estate projects across the State,” have now been asked to register themselves with KRERA within the next two months.

A recent KRERA circular pointed out that digital portals carry out the function of real estate agents, who are required to register under the authority. Over 2,000 real estate agents have registered under the authority so far.

“Further, digital portals are obligated to maintain and preserve books of accounts and facilitate possession and documents. Those portals who do not want to discharge functions provided under law, it is up to them to confine their activities as advertising agencies,” the circular added.

A large number of people — those looking to purchase or rent a house — take the help of such portals, mostly because of the wide variety of choices available, and because in many cases, there is the option to opt for an unpaid subscription. On the other hand, availing the services of a real estate agent would involve a commission.

Justifying the move, the authority said upon verification, it was found that many online portals were promoting and advertising real estate projects without mentioning the RERA registration number of the projects. “Therefore, it is construed that digital portals are providing incorrect information about real estate projects,” the KRERA December 14 circular said.

The Forum for People’s Collective Efforts has welcomed the move. “It is a very good initiative from KRERA. This is the first time in the country that online digital platforms have been mandated to get registered. Home buyers in Karnataka are now more protected by misleading promotions and advertisements by these online portals,” said M. S. Shankar, national secretary of the forum.

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Printable version | Jan 21, 2020 8:20:12 PM | https://www.thehindu.com/news/cities/bangalore/online-real-estate-portals-asked-to-register-with-krera-within-two-months/article30322568.ece

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